Homeserve
Is this trend a good trading opportunity?
Will Homeserve turn, or will it continue to rise to a fresh record high of 1300p?
- Shares +16% from recent lows; Now trading 1223p (at the time of writing).
- Will the positive momentum continue towards a fresh record high of 1300p?
- Shares -1.1% from 2019 highs; +43.2% from 2019 lows; +40.8% year-to-date.
- 21 May: Homeserve FY 2019 profit climbs after revenues top £1bn
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Homeserve – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Homeserve using a CFD, at the current price of 1223p. To do this, you need £2,000.
Let’s assume the Homeserve trend continues to a fresh record high of 1300p (+6.2%). Your profit would be £620, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Homeserve falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.